For many Ontario buyers, the hardest part of buying a home is not finding the right property. It is saving enough money for the down payment.

You may have a steady income, a good credit history, and a clear idea of where you want to live, but seeing a $100,000 or $150,000 down payment requirement can make homeownership feel impossible.

The good news is that you do not always need 20% down to buy a house in Ontario.

As an Ontario based REALTOR®, Parth Jani regularly helps buyers understand what they can realistically afford, how much cash they need to get started, and what costs they should prepare for before making an offer.

How Much Do You Actually Need Down?

Under Canada's current minimum down payment rules, a buyer can put down as little as 5% on a home priced at $500,000 or less. For homes between $500,000 and $1.5 million, the calculation changes to 5% on the first $500,000 and 10% on the portion above $500,000.

Here is what that looks like in real numbers:

So, for example, if you are buying a $600,000 home, you do not need $120,000 for a 20% down payment just to meet the minimum requirement.

The minimum would be:

5% of the first $500,000 = $25,000

10% of the remaining $100,000 = $10,000

Total minimum down payment = $35,000

That difference can be significant for someone who has been saving for years to enter the Ontario housing market.

But There Is an Important Catch

Putting down only 5% does not mean the rest of the home purchase comes without additional costs.

When your down payment is less than 20%, you will typically need mortgage loan insurance. The insurance protects the lender if the borrower cannot make the mortgage payments. The premium depends on the size of the mortgage and down payment and can generally be added to the mortgage.

In simple terms:

Smaller down payment = less money needed upfront

But also:

Smaller down payment = larger mortgage + mortgage insurance costs

That is why the right question is not simply, "Can I buy with 5% down?"

It is:

"Can I comfortably afford the monthly cost of owning the home?"

Ontario Buyers Should Budget for More Than the Down Payment

One of the biggest mistakes first time buyers make is saving exactly enough for the down payment and forgetting about closing costs.

You may also need money for:

Land transfer tax

Legal fees

Title insurance

Home inspection

Property tax adjustments

Home insurance

Moving expenses

And potentially other costs depending on the property and transaction.

There is some good news for eligible first time buyers.

Ontario offers a Land Transfer Tax refund of up to $4,000 for qualifying first time homebuyers. The refund has specific eligibility requirements, including rules around previous home ownership and occupying the property as a principal residence.

What Does the Ontario Market Look Like Right Now?

The 5% down payment option matters because Ontario's housing market covers a very wide range of prices.

According to the latest available CREA statistics, the Ontario MLS® benchmark price was $749,800 in July 2026. The benchmark price for single family homes was $832,800, while the benchmark price for apartment units was $490,500.

That apartment benchmark is particularly interesting for buyers working with a smaller down payment.

At approximately $490,500, a 5% minimum down payment would be about $24,525, before considering closing costs and mortgage insurance.

Could a 5% Down Payment Make Sense for You?

It can, particularly if saving 20% would take many additional years and you have stable income, manageable debts and enough savings to handle the other costs of buying.

But putting down the minimum is not automatically the best financial decision.

A larger down payment can reduce the amount you borrow and may reduce mortgage insurance costs. On the other hand, putting every dollar of your savings into the home could leave you with very little emergency money.

The best down payment is the one that allows you to buy responsibly while keeping your overall finances comfortable.

What About a 30 Year Mortgage?

For some buyers, a longer amortization period can also affect affordability.

Currently, insured mortgages can have a maximum amortization of 30 years for first time homebuyers and buyers purchasing a new build, subject to the applicable requirements. Other insured borrowers generally have a 25 year maximum amortization.

A 30 year amortization can reduce the required monthly payment compared with a shorter amortization, but you may pay more interest over the life of the mortgage.

So, Can You Buy a House in Ontario With 5% Down?

Yes, a 5% minimum down payment is possible for eligible purchases, but it does not mean you should automatically aim for the lowest possible down payment.

For a $500,000 home, you could potentially start with $25,000 down.

For a $600,000 home, the minimum is $35,000.

For an $800,000 home, it is $55,000.

The important part is understanding the complete picture: your income, debts, credit, mortgage qualification, closing costs, monthly payment and how much savings you will have left after buying.

Thinking About Buying a Home in Ontario?

Buying a home becomes much less intimidating when you know your numbers before you start looking.

Parth Jani can help you understand your options, evaluate properties and navigate the buying process from the first conversation through closing.

If you are wondering how much house you can afford in Ontario, how much down payment you need, or whether buying with 5% down makes sense for you, connect with Parth Jani and start planning your purchase with confidence.